Free Investment Talk At GEMS Modern Academy Dubai, 2:15pm, Tuesday, February 28th, 2017
It started slowly, 3 or 4 years ago. But the pace is picking up. Expats in the Middle East have started to talk.
Their investments have performed like a giant plastic bag sold as a parachute.
Over the past 5 years, the U.S. stock market has increased by more than 100 percent to Wednesday, February 22, 2017. If you had invested $10,000 in the U.S. stock market, it would have grown to $20,047. This isn’t the growth rate of a special hot stock. This reflects the overall growth of the U.S. stock market from February 2012 to February 2017.
$10,000 Invested In U.S. Stocks
February 2012-February 2017
Over the same five-year time period, the global stock market increased by 65.84 percent. That would have turned $10,000 into $16,584 over the same five years.
$10,000 Invested In Global Stocks
February 2012-February 2017
What if you began to invest 10 years ago, adding $500 a month into global stocks? In total, you would have added $60,000. According to portfoliovisualizer.com, by February 22, 2017 such an investor would have seen their money grow to $99,480.
$500 A Month Into Global Stocks
February 2007-February 2017
If an investor were fairly risk-averse, they may have chosen to put half of that $500 a month into U.S. government bonds, with the rest in global stocks. In that case, if they invested $500 from February 2007 to February 2017, the $60,000 invested would have grown to $86,860.
$500 Per Month Invested
50% Global Stocks; 50% U.S. Government Bonds
It would have been tough to lose money over the past one, three, five, ten, fifteen, twenty and twenty-five years. Yes, there were years when the markets did drop. But if you were patient, you should have made a lot of money.
That said, many expats in the Middle East found a way to lose. Few of them beat inflation over 10 years or longer. In most cases, it wasn’t their fault. They were cold-called at home. “I can invest your money,” the silver-tongued salesperson said.
Other times, they emailed you at work.
You wondered, “How did they get my number?”
Other firms insisted that you transfer your UK-based pension into a QROPs scheme. Sometimes, that’s a very bad idea. Such a move should be determined on a case-by-case basis. But advisors make huge commissions when they make such a transfer. To a hammer, everything’s a nail.
The biggest tragedy, however, is when your employer invites them in. This is the case with some of the schools in the Middle East.
School administrators rarely know better. It costs their teachers plenty. But they, too, are starting to catch on.
I’ll be speaking at GEMS Modern Academy on Tuesday February 28th. My 75- minute talk starts at 2:15pm.
So far, more than 300 people have registered to attend. Please request a spot at the email below.
Tuesday, February 28, 2:15PM – 4:00PM
Free to attend. You will need an ID to enter the school.